Mathews To Juggle Tax Values

Rate Hike To Match Falling Assessments

MATHEWS — Though it may look like a tax increase for the county, it really isn't, the Board of Supervisors said Monday night. It's a decrease in the assessed value of vehicles.

As a result, the effect should be - as the number-crunchers say - ``revenue-neutral.'' The county isn't trying to make money on the deal.

Responding to complaints from citizens, the board began talking last year with Commissioner of Revenue Ray Hunley about changing the way he assesses vehicles for tax purposes. He said he has always assessed at retail value, but taxpayers didn't know that until he started itemizing tax statements a few years ago.

People then started complaining that the tax value of the vehicles was much higher than the amount they could sell them for. Hunley agreed, but if he changed the assessment to trade-in value, the county would lose thousands of dollars in taxes unless it increased the tax rate, he said.

The supervisors are ready to do that for the 1997-98 fiscal year, which starts July 1.

Hunley told the board Monday night that trade-in values on average are 29 percent lower than retail values.

So, to even out a lower assessed value, the personal property tax rate would have to increase about 29 percent. In round numbers, that would be an increase from the current $1.94 to about $2.75 per $100 of assessed value, suggested board Chairman John A. ``Jay'' Black III.

For instance: If your car were valued at $2,000 and taxed at $1.94 per hundred, you paid $38.80 in taxes. If your car were valued at 29 percent less - $1,420 - and you paid a rate 29 percent higher, about $2.75 per hundred, you would pay $39.05 in taxes.

Hunley cautioned that every taxpayer won't see the same effect on the tax bill. Using trade-in value for an older vehicle could cause a noticeable drop in the assessment and thus a tax break, he said. But there may not be much of a difference for a newer model or a model that holds its value well, he said.

Hunley also suggested that the county continue to offer preferential tax treatment to boats. Currently, boats are assessed at only 70 percent of value. If boats were assessed at full value - 30 percent more - the tax rate could be dropped about 30 percent, say to $1.36 per $100, to even out the revenue flow.

That tax rate would look like a tax break, encouraging more boaters to keep their boats in the county, he said.

This year, there are 2,595 boats assessed at about $12 million. They bring in about $236,000 in taxes, he said.

Hunley will work out some projections for the board to consider at its work session tonight.

WORK SESSION

The Board of Supervisors will hold a work session on the proposed budget draft at 7 tonight in the conference room on the second floor of the administration building. The board is expected to revise personal property tax rates, approve the draft budget and set a date for a public hearing. The hearing is tentatively scheduled for 7:30 p.m. April 24 at Thomas Hunter School.

MATHEWS COUNTY PROPOSED BUDGET DRAFT

Current Proposed (draft) Difference

General fund $12,513,520 $12,950,230 $436,710, or 3.5%

Sanitary district $162,000 $172,000 $10,000, or 6.2%

TOTAL county budget $12,675,520 $13,122,230 $446,710, or 3.5%

SOME HIGHLIGHTS:

* No change is proposed in the real estate rate, which is 68 cents per $100 of assessed value.

* The original draft called for 4 percent raises for county employees. The supervisors cut this to 3 percent but recommended paying $10 more a month toward employees' health benefit.

* The sheriff would receive $45,000 to replace two vehicles. Each deputy would receive a pay supplement of $100 a month.

* The school division would receive total funding of $7.9 million. Of that, $4.11 million would be in local money. That would be $317,810 more than this year. The School Board asked for $4.49 million in local money.